Chattanooga council to vote on $29.3 million from reserves

The Chattanooga City Council takes its first vote Tuesday on a mid-year budget amendment that would spend $29.3 million from the city’s General Fund reserves. The meeting starts at 3:30 p.m.

The amendment is listed for first reading on the council’s agenda for Tuesday, Oct. 27. The council held a public hearing on it at its Oct. 20 meeting. A second and final vote is on the proposed agenda for Tuesday, Nov. 3.

What the budget amendment does

Two ordinances change the budgets the council passed for the fiscal year that began July 1. According to the agenda:

• The first amends the fiscal 2026-27 operations budget “to appropriate $29,321,000 from General Fund reserves to various departments and appropriate $26,439,000 to capital.”
• The second increases the capital budget by $26,439,000 from General Fund reserves. It also adds $150,000 from the Bessie Smith Cultural Center Building Maintenance Fund.

The agenda does not list which departments or projects would get the money. That detail was not posted with the agenda, and the city had not issued a release on the amendment when we checked Monday. We will add the breakdown when the city publishes it.

Also on Tuesday’s agenda

Sewer work at Riverview. The Wastewater Department wants a $1,797,210 change order with Hurst Excavating on its Riverview Park/CGCC Chronic Overflow Elimination Project. It would pay for about 740 feet of 24-inch gravity sewer inside the Chattanooga Golf and Country Club property, the remaining stretch of the line. The contract would rise to $5,266,635.46. The project is in District 2.

Early Head Start. Chattanooga Head Start would renew partnerships with two sites, Chambliss and Children’s Academy, for the 2026-27 school year. Each would keep 24 infants and toddlers, 48 in all, for a budgeted 234 classroom days.

Rezonings on final reading. They include:

• 8022, 8026 and 8030 Old Lee Highway and a neighboring parcel, from residential and commercial zones to RN-3 residential, for MatCo Affordable Housing (District 6)
• 400, 402 and 405 Garden Road, from residential to open space and urban agricultural zones, for Tucker Build (District 1)
• 3935 Cromwell Road, from residential to neighborhood commercial (District 5)
• 2411 Awtry Street, from residential to commercial corridor (District 9)

Other spending. The council will also consider:

• a five-year OpenGov contract for fleet management software, up to $150,000 a year
• a $102,850 fence around the Brainerd Manor pump station (District 5)
• a $32,162.40 change order on the John A. Patten Ballfield Improvements (District 1)

Coming Nov. 3

The proposed agenda for Nov. 3 includes:

• a resolution backing Tennessee American Water Company’s program to replace lead and galvanized water service lines, including the customer-owned portions
• a settlement agreement with Nippon Paint, using clawback and settlement terms from its donation agreement with the city
• a memorandum of understanding with The Stadium Corporation on payments tied to state and local sales tax revenue at Finley Stadium
• a $122,000 payment to the U.S. Environmental Protection Agency under the city’s sewer consent decree, for sewer overflows in 2025

What it means for you

• Tuesday’s vote is the first of two. You can still speak to the council before the final vote. Each agenda ends with “Recognition of Persons Wishing to Address the Council.”
• The meeting starts at 3:30 p.m. Agendas and minutes are on the city’s council agendas page.
• To find your council district and member, see our guide to who to call at City Hall. For tax rates and due dates, see property taxes in Chattanooga.